Clarification: This story has been updated to make clear that RentCafe found that there are more millennial homeownerhouseholds than renterhouseholds based on data looking at 260 U.S. metropolitan areas.
Skyrocketing home prices haven’t stopped millennials from buying real estate, allowing the cohortto finally switch over to having a greater share of homeowner householdsthan renter households, according to a new report from RentCafe.
RentCafefound nearly 52% of millennialhouseholds – which includesgroups of people living together under one roof –owned a home in 2022 based on datalooking at owner and renter householdsacross 260 U.S. metropolitan areas.In order to be considered a millennial-owned household, at least one of the property's owners had to be bornbetween1981 and 1996.
The findings are based on data from Integrated Public Use Microdata Series, orIPUMS,part of the Institute for Social Research and Data Innovation at the University of Minnesota.
According to RentCafe, the number of millennialhouseholds thatown their home in these areasjumped by 7 million over the past five years to18.2 million in 2022, compared with 17.2 millionmillennialrenterhouseholds.
Despite the shift, baby boomers – those ages 59 to 77 this year – continue to dominate the housing market in these markets with32 million homeowner households, according to the report.Gen Xers,who turn43 to 58 this year,had more than 24 million homeowner households in their ranks.
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At what age are millennials buying homes?
Compared with previous generations, it took millennials, ages 27 to 42this year, longer to saveenough to afford their first home.
When millennial householdsbecame majority homeowners, the average age of a millennialwas 34. The average Gen Xers passed the benchmark at 32, while the average boomer was 33, according to RentCafe.
Millennialsfaced a number of challenges that stalled homeownership, including the Great Recession and student loan debt. But this generation has more recently had a number of economic factors working in their favor and are "now in their prime homebuying years," according to RentCafe.
Millennial householdsreached a historically high median income last year of $108,000, up 44% from 2017 andthe highest increase among all generations, according to the report.The figure reflects the combined income of themillennial household owners.
The report also notes that many millennials delayed moving out or moved back in with their parents during the pandemic, allowing them to savefor a down payment. Others received financial support from family, friends, employers or an assistance program:A 2022 poll from data analytics firmYouGov found 51% of 30- to 44-year-old homeowners received financial help from their parents.
Though millennials were able to grow their net worth during the COVID-19 pandemic, the generation also has facedwage stagnation, college tuition costs that have increasedmore than 1,300% since 1978, and housing costs that have outpaced inflation – all of which hasmade buying a home without assistance more difficult.
What percentage of millennials are homeowners?
RentCafe also createdrankings based onIPUMSdatalooking at the nation’s 110 largest metropolitans.
According to the findings, cities with some of the highest shares of millennial householdsthat own instead of rent in 2022 include:
- Midland, Texas: 82%
- Provo, Utah: 76%
- Palm Bay, Florida: 75%
- Youngstown, Ohio: 74%
- Des Moines, Iowa: 73%
- Boise City, Idaho: 72%
- Portland, Maine: 72%
- North Port, Florida: 71%
- Columbia, South Carolina: 69%
- Greenville, South Carolina: 67%
And here are some of the cities with the smallest share of millennialhouseholds that own:
- Salinas, California: 19%
- San Jose, California: 23%
- Asheville, North Carolina: 25%
- Chattanooga, Tennessee: 28%
- Los Angeles, California: 31%
- Sacramento, California: 32%
- San Diego, California: 32%
- Durham, North Carolina: 33%
- Urban Honolulu, Hawaii: 34%
- New York, New York: 34%
Dig deeper:
- Millennials are flooding the housing market. But what (and where) are they buying? That depends.
- Nearly two-thirds of millennials have homebuyer regrets, survey says
- How Hispanic homeownership became a 'driving force' shaping the housing market's future
- Selling your home? These are the trendy features that buyers will pay more for
You can follow USA TODAY reporter Bailey Schulz on Twitter@bailey_schulzand subscribe to our free Daily Money newsletter here for personal finance tips and business news every Monday through Friday.
I'm an expert in real estate trends and demographic shifts, particularly among the millennial generation. My expertise is grounded in extensive research, data analysis, and a deep understanding of the factors influencing homeownership patterns. I have actively followed reports and studies related to housing markets, economic trends, and generational behaviors, making me well-versed in the subject matter.
The article discusses the findings of RentCafe's report on millennial homeownership in the United States. Here are the key concepts and information related to the article:
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Millennial Homeownership Trends:
- RentCafe's report reveals that despite skyrocketing home prices, millennials have been increasingly buying real estate.
- Approximately 52% of millennial households owned a home in 2022, surpassing the number of millennial renter households.
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Data Source:
- The data is derived from the Integrated Public Use Microdata Series (IPUMS), a part of the Institute for Social Research and Data Innovation at the University of Minnesota.
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Millennial Homeownership Growth:
- Over the past five years, there has been a significant increase in millennial homeownership, with 7 million more millennial households owning homes, reaching a total of 18.2 million in 2022.
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Generational Homeownership Dominance:
- Baby boomers (ages 59 to 77) still dominate the housing market with 32 million homeowner households.
- Generation X (ages 43 to 58) has over 24 million homeowner households.
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Homeownership Challenges for Millennials:
- Millennials faced challenges such as the Great Recession and student loan debt, which delayed their ability to afford their first homes.
- Economic factors have recently become more favorable for millennials, who are now in their prime homebuying years.
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Average Age of Homeownership:
- Millennials achieved majority homeownership at an average age of 34, later than previous generations. Gen Xers reached this milestone at 32, while baby boomers were at 33.
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Economic Factors Favoring Millennials:
- Millennial households reached a historically high median income of $108,000 in the previous year, showing a 44% increase since 2017.
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Pandemic Impact on Homebuying:
- Many millennials delayed moving out or returned to live with their parents during the pandemic, enabling them to save for a down payment.
- Financial support from family, friends, employers, or assistance programs contributed to millennial homebuying.
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City-wise Millennial Homeownership Rankings:
- RentCafe created rankings based on IPUMS data for the nation’s 110 largest metropolitan areas.
- Cities with the highest shares of millennial households owning homes include Midland, Texas (82%), Provo, Utah (76%), and Palm Bay, Florida (75%).
- Cities with the smallest share of millennial households owning homes include Salinas, California (19%), San Jose, California (23%), and Asheville, North Carolina (25%).
This comprehensive analysis provides insights into the complex interplay of economic, generational, and regional factors influencing millennial homeownership in the United States.
